PA oil and Gas reports released for second half of 2011

https://www.paoilandgasreporting.state.pa.us/publicreports/Modules/...

Checked my pad with the 6 permitted wells and one says

"Rig Release 05-24-2011 Stimulation 08-20-2011 not completed" 

the others say.

"Not yet drilled Conducter set But Not drilled with big rig"

Anyone knows what that means?

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Permalink Reply by craig on February 24, 2012 at 7:26am

I'm looking at a royalty stub right now, although not my own yet. Using the amount/acre that he/she was paid, $78.40/acre ( at $3.69/mcf sept '11) I come up with $3,292.80 per month for 42 acres.

That $78.40/acre is a real number for a supposedly all dry gas well in Beaver County. But you must remember that gas is at $2.70 or so right now.

Permalink Reply by mlb on February 24, 2012 at 8:49am

Thanks, thats close to what I came up with.  Yeah, gas is at an all time low so we will see, can only go up right!

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on February 24, 2012 at 6:08pm

thank you mlb..this is the kind of info most here are hoping to get help in figuring out while they wait for production.

thank all of you who share here to help us members grow in knowledge and know what to expect in the process of production and receiving royalties and evidentally how to find what royalties are missing...like Eric's story about the other lease holder as lessee.

Permalink Reply by mlb on February 25, 2012 at 4:37am

Your welcome.  As I said, I used those royalty calculators but they aren't much good, at least in my opinion.  Erics numbers and others on here really helped hone it on what one can expect.  Give yourself a range of a few grand one way or the other.  Even with low numbers like craig pointed out, its still not bad.  I won't complain for doing very little to get that kind of return.  I live modestly so a sustained 3k per month and I'd scale back my work hours!

I think that is what most want to see.  We all have various items to take care of, bills, jobs medical issues etc and it is just nice to see how this might help us all out.

Permalink Reply by Clinton44 on February 24, 2012 at 7:32am

Sort of makes financial sense for the gas companies especially if some of the leases they hold in the area are close to expiring. Saves them from having to renegotiate...

Permalink Reply by craig on February 24, 2012 at 7:59am

Now if you are in the wet gas zone then maybe they'll be drilling multiple wells on one pad once they get what they need HBP.

Permalink Reply by Clinton44 on February 24, 2012 at 6:08am

 MLB and Jason, Both your calculations seem accurate the size of the your acreage in the unit is relative to the percentage of the royalties that you will receive. Think how many others contained in the unit play a part as well.

Permalink Reply by mlb on February 24, 2012 at 6:18am

Yes, units vary in size.  The nearest one to me was 980 acres.  Its with CHK and I think they try to make them as large as possible.  I was just doing the math and figured it really does not matter to the land owner how big they make them.  Sure your % of land drops but then of course recovery will increase so it all should work out to be pretty close.

 

Your time table on the royalties seems pretty close as to what the gas company told me ( so long as a pipeline exist ).  That I am not sure of yet but will look into soon.

Permalink Reply by Clinton44 on February 24, 2012 at 6:24am

To give you an idea of how they do their math. As I said the unit we are in is around 650 acres our royalty is 15% we have 42 out of our 96 owned ares in the unit and our percentage is 0.00900172

Permalink Reply by mlb on February 24, 2012 at 7:08am

To get 0.00900172 I am thinking they divide your 42 by 650 and then multiply by .15 ( your royalty ).  I get .0096922 with that but close enough, at least to thousands.  Must be one more variable I'm not considering, no matter though.

 

Yes, vacations and early retirement or semi-retirement I am hoping for I can't fib so I am attempting to see if it is possible and it looks like it is if all goes as planned.  I'm 39 so I'm in the middle of you and Jason.  Thanks for your help/insight.  Once I have a well pad done I can anticipate about 1 yr until things start happening with royalties ( as long as pipeline is in place ).

Permalink Reply by Clinton44 on February 24, 2012 at 7:27am

Yes in our case around one year was the time frame. Your calculations are good that is basically the way the Andarko representative explained it to me. I stink at math will have to ask my son to check their calculations LOL!!

Permalink Reply by Ralph Wayne Detwiler on February 24, 2012 at 7:13am

MLB, What county are in in....We have land in Fayette county.I think we are in the wet gas area,Thanks

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